[Update] JPMorgan: Apple Apparently Reduces Orders for iPad Parts

Update 1: It appears JPMorgan was misguided with their report, as the WSJ notes. Apple may have been reducing its supply chain orders based on a previous report manufacturing of iPads was moving to Brazil.

Apple has reduced orders for iPad parts from its supply chain, according to a new JPMorgan report via Bloomberg:

Several supply-chain vendors indicated in the past two weeks that Apple lowered fourth-quarter iPad orders 25 percent, the first such cut that analysts at JPMorgan’s electronic manufacturing services team in Hong Kong said they have ever seen.

A reduction in orders could affect manufacturing companies such as Hon Hai Precision, with drops from 17 to 13 million units in the fourth quarter, the report noted. Reduced demand could be a result of lower demand in Europe due to its economic position, and an updated conservative strategy by Apple, reports analyst RBS Asia.